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Oil Price Outlook
Oil prices are changing (unfortunately dropping) so quickly it is difficult to follow specific prices, much less predict them. However, we are trying to follow the factors that we believe influence prices. Some forecasts are for continued deterioration of prices through midyear 2015. Recent developments lend credence to this prediction. Demand weakness, increasing inventories, new… Read More
Linn Reacts to Price Drop
“Rigzone” cites a Reuters report that Linn Energy LLC is following a trend among domestic operators and reducing its capital budget and dividend. The 2015 budget will be cut 53% down to $730 million and the dividend per share of its LinnCo unit decreased from $2.90 to $1.25 on an annual basis. The capital program… Read More
Texas Drilling Permits Fall in November
“Rigzone” reports that Texas, the leading oil producing state in the U. S., issued only about half as many drilling permits in November as in the previous month. While this decrease is widely attributed to the drop in oil prices, it still took several months to develop. Oil prices plunged in late June, but from… Read More
Crude Price, Rig Count and Production
A recent article in “Rigzone” cites several studies that deal with the relationship between crude price, rig count and production levels. The economic blog “Zero Hedge” contends that there is a 4-6 month lag between crude prices and their reflection in rig counts, and current experience seems to bear this out. However, a study by… Read More
Whiting’s Reserves Increase by Approximately 1/3
According to a recent article in “Rigzone”, Whiting Petroleum Corp. reports that its proven reserves increased by approximately one third to 780 million barrels of oil equivalent. This increase is largely the result of the company’s recent buy out of Kodiak Oil & Gas which had proven reserves of 167 million barrels. The purchase makes… Read More
